CGAP Public Sector Compliance and Regulations 3

Question 1

Which principle requires government auditors to be free from personal, external, and organizational impairments to independence?

Accepted Answer

Independence in fact and appearance

Answer

GAGAS requires auditors to maintain independence in both fact (actual state of mind) and appearance (perception by others) throughout the audit.

Question 2

Under GAGAS, what is required when an auditor identifies a violation of provisions of contracts or grant agreements?

Accepted Answer

Report the violation in the audit report unless clearly inconsequential

Answer

GAGAS requires auditors to report violations of contract or grant provisions in the audit report unless the violations are clearly inconsequential.

Question 3

What is a 'finding' in a government performance audit report?

Accepted Answer

A structured presentation of criteria, condition, cause, and effect identifying a deficiency or noteworthy achievement

Answer

A finding in a performance audit presents the criteria (what should be), condition (what is), cause (why), and effect (so what) to explain the significance of an issue.

Question 4

Which act established the framework for congressional oversight of federal programs through regular reporting of performance results?

Accepted Answer

Government Performance and Results Act (GPRA) of 1993

Answer

GPRA of 1993 required federal agencies to develop strategic plans, set performance goals, and report annually on results, creating a results-oriented management framework.

Question 5

What does 'materiality' mean in the context of a government financial statement audit?

Accepted Answer

The magnitude of a misstatement or omission that could influence decisions of users of the financial statements

Answer

Materiality is the threshold at which a misstatement or omission could reasonably be expected to influence the decisions of financial statement users.

CGAP - Certified Government Auditing Professional Practice Test

CGAP - Certified Government Auditing Professional Practice Test

CGAP Public Sector Compliance and Regulations 3